Watch this video to learn how couples can manage their retirement income with Fidelity after they have already reached retirement. To find more resources about retirement income, visit: https://www.fidelity.com/calculators-tools/retirement-income-planner To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments Meet Ivan and Cassandra. Ivan is 67, and Cassandra is 64, and they both just recently retired. They want to get a better handle on their retirement finances, and see if they can get more out of their investments for the long-term. Fidelity is ready to help Ivan and Cassandra manage their money in retirement in a way that is comfortable for them and gives them confidence. While there are many different ways to interact with Fidelity – online, via phone, or in person - today the couple is meeting at their local branch with Ellen, a Fidelity investment professional. It is the first in a series of conversations that the couple will have with Ellen. It’s an important time for them to work together as a team, so the focus today is for the couple to share with Ellen their retirement goals and concerns – to help Ellen get to know Ivan and Cassandra, and their financial objectives. In their next conversation, Ellen will review Fidelity’s analysis with the couple. Then they will work together on how to make Ivan and Cassandra’s retirement income plan come together, using Fidelity’s best thinking. Ivan and Cassandra share with Ellen their primary retirement goal – which is to enjoy the freedom that comes with retirement, including spending more time in warmer climates during the winter months. Overall, they hope to live largely the same lifestyle they did while they were both working. Ellen learns that Ivan and Cassandra have two grown daughters, ages 26 and 24. They discuss another one of the couple’s goals - to leave their daughters with some type of inheritance. The couple recently paid off their mortgage, with the intention of leaving their home, free and clear, to their daughters. Ellen asks the couple about their health…they’ve had some minor issues, but nothing serious, and definitely hope to be more active now that they have free time and are away from their desk jobs! But given this, they also think a lot about how long they will live – they have relatives who lived into their late 80s and early 90s. So naturally, their number one concern is ensuring their money lasts throughout their retirement years. Cassandra recognizes that they will need growth if their portfolio is going to last 25 or more years, and she also understands that this will probably require some calculated risk taking. Ellen starts to take a closer look at the couple’s financial picture - income, savings, and expenses. First, they discuss the income the couple expects in retirement. Neither has a pension, nor do they plan to work during retirement. Both plan to begin taking Social Security at age 67 – this year for Ivan, and in 3 years for Cassandra – but question if that is really the right time to do so? Ellen prepares Ivan and Cassandra for the idea that they will likely need to create cash flow in retirement from their savings, especially in the years before Cassandra begins taking Social Security. Next, they review their savings. Ivan and Cassandra have saved diligently, and have accumulated over $900,000 in savings across retirement accounts, nonretirement accounts and an emergency fund. Finally, it is time to look closely at their essential living expenses –such as home ownership costs, utilities, and healthcare. Ivan and Cassandra are surprised to learn that Fidelity figures, on average, that health care costs could reach more than $220,000 for a couple over the course of retirement. Finally, Ellen talks about expenses around lifestyle in retirement. She indicates that the key is to be prepared, and to always be thoughtful about striking a balance between wants and needs. The couple agrees that travel and recreation are priorities for them, especially in their early retirement years, so they earmark budget for these activities With this foundational planning complete, Ellen, Ivan and Cassandra agree to chat a follow-up meeting next week, and Ellen begins preparing by using the inputs and objectives the couple has shared with her today. In their next discussion, Ellen shares with them the results of her analysis, the basis of which was developed using Fidelity’s sophisticated planning and guidance capabilities.[...] Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 700496.5.0
Visibility: 8404
Duration: 7m 38s
Rating: 17